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SC: Sending Amrapali promoters to jail won't solve any problem

Team SoOLEGAL 18 Apr 2018 6:26pm

SC: Sending Amrapali promoters to jail won't solve any problem

New Delhi: The Supreme Court bench of Justices Arun Mishra and U U Lalit while hearing the case of defaulting real estate developer said that sending Amrapali’s promoters to jail would not solve any problem. It said compelling the promoters to complete the project for which homebuyer's have paid them the money and handing over the possession is a better option. To this affect the bench asked the company to prepare a comprehensive plan and share it with the court on April 26.

More than 42,000 homebuyer’s  money is stuck in various Amrapali projects. They have paid substantial amount of the money but projects are held up as the company has declared it is cash strapped and in the present scenario can't complete the projects. The situation is such that at some of the projects not even a brick has been laid.

The situation is such that at one hand homebuyer's are asking for delivery of flats and on the other hand banks which have lent money, are asking for return of loans. Infact, they have started insolvency proceedings against the company.

With this as the situation senior advocate Ranjit Kumar, appearing for the developer, sought the court’s permission to auction its land to raise money to complete the nine projects nearing completion. The bench, however, refused its plea and said, “We cannot allow you to auction the property until the buyers get their flats. You first complete the project and then we will consider your plea. You have to show your bona fide first.”

As per an estimate filed in the apex court, around Rs 452 crore would be needed to complete  five projects such as Amrapali Sapphire, Amrapali Zodiac, Amrapali Eden Park, Amrapali Silicon City -I, II  in Noida .These projects have about 6917 flats .In addition the company would need another Rs 1500 crore to complete its various pending projects in Greater Noida.

Tagged: SC   Amrapali   Bankers   Homebuyer's  
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